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QUESTION 13 A large company has the opportunity to select one of seven projects-A, B, C, D, E, F, G-or choose the (do-nothing) alternative.
QUESTION 13 A large company has the opportunity to select one of seven projects-A, B, C, D, E, F, G-or choose the (do-nothing) alternative. Each project requires a single initial investment as shown in the table below. Information on each alternative was fed into a computer program that calculated the IRR for each project and all the pertinent incremental IRRS as shown in the table below. Project Initial investment Rate of Incremental IRR return A B C D E F A $10,000 10% B $12,000 9% 796 C $13,000 8% 8% 1% D $15,000 79 9% 596 9% E $17,000 6% 5% 10% 696 39 F $19,000 596 8% 296 596 596 5% 0 $25,000 796 39 896 796 796 39 10% If MARR is 5.5%, indicate which decision should be taken. Select project D O Select project A O Select project E O Select project F O None of the above k
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